ENTREPRENEURIAL PLANNING
BUSINESS PLAN DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Profit
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Total costs
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Revenue
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Variable costs
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Detailed explanation-1: -Total revenue is the combination of all sales of products or services before expenses. To calculate total revenue, the quantity sold is multiplied by the price per item.
Detailed explanation-2: -Total Revenue = Number of Units Sold X Cost Per Unit To make it easy to remember, just think “quantity times price.” If you have multiple products and/or services, calculate the total revenue for each separately and add them together.
Detailed explanation-3: -For calculating the marginal revenue, one must consider the total change in revenue and then divide it by the change in the number of units sold. The formula for marginal revenue is marginal revenue=change in the total revenue/change in output.
Detailed explanation-4: -Total revenue equals the market price times the quantity the firm chooses to produce and sell.